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  • in reply to: S Corp Revocation #3289109
    NYSCPA
    Participant

    Thank you for your response. Its funny you answer that way when I prefaced the post with “To anyone with experience and/or knowledge of such matters I ask the following” I know what A71 is. Been around these parts for over a decade. I was going to add “for the older folks” but didn't want to offend anyone… That said, I was hoping to get the likes of you or Recked, Skynet, maybe even Jeff to give a response. I think we are part of the “older” or rather more experienced crowd. Whether it be here or r/accounting, I'm not depending on anyones advice. But if I've learned anything over the last decade 1) Doesn't hurt to ask 2) Doesn't hurt to get another perspectives on things, especially if that individual(s) have experience on the matter at hand.

    As an aside. It may be helpful to the young folks to see real world situations that us “older” folks encounter.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Side Business #3017202
    NYSCPA
    Participant

    @RECKED what's a good email I can reach you at to schedule something? You are correct, I am down in this, currently semi/hellish, concrete jungle. Thank you, you are too kind. Idk if I'd say I'm a rainmaker, just a light drizzle. I'm trying to build a book of my own. While I see nothing wrong in taking over for someone else/buying an existing practice, its just not the same as building something of your own.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Side Business #3012234
    NYSCPA
    Participant

    Thank you all for your responses. I look forward to your guys' input as it is always enlightening. For all intents and purposes, their clients of choice are the Gates, Bloombergs, and Buffetts of the world. My target clientele are a little more common. Therefore, while I can see there maybe a conflict of interest from a profession standpoint. There definitely isn't one from a client standpoint. And I've tried to bring new business (10, 20, even 60k potential billings) and was rebuffed everytime. I'm staying because I'm being told I could be partner once my boss retires….. But doing so means I'm turning away potential clients because (It would be wrong for me to have a side business…)

    Note that I understand and agree with everything said. I know where my loyalties lie. But loyalty is a two way street. If I could bring in millionaire/billionaire clients I would in a heart beat. As I am well aware that I am only worth the service I provide/money I could bring into the firm. That siad, I think my only option maybe to find a firm that's willing to take me on and allow me to cultivate my business (profit sharing arrangement, etc) or find an industry position.

    Maybe it's because I'm a millennial.. But I just don't understand why the mindset isn't “holy shit this guy means business, he's networking, building a book of business, etc.” Rather the thinking is “we own you. Side business is a no no” .

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Tax Return Checklist #2959967
    NYSCPA
    Participant

    If your state has a CPA society with an online forum, like NYS, try there. A fine gentleman by the name of Ed Mendlowitz prepares one every year. I have a copy of his that I can email to you.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Getting My CPA Has Not Paid Off So Far #2945706
    NYSCPA
    Participant

    You talking about what? Bitching about some company that doesn't want to pay you for passing an exam? Raises are for closers only… Want your CPA to pay off? Specialize in tax, get some actual experience under your belt and start a side gig. Bill at $200-$300/hr. Build that side gig into a full time thing…. That's how a CPA license pays off. You can't play in the CPA game, go home and tell your wife your troubles.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: I want a lot of money #2930004
    NYSCPA
    Participant

    It seems like no matter how you define a lot of money, staying where you are now doesn't get you any closer to your goal. Only thing it provides is a salary. Which I'm sure you can find at another job while gaining relevant experience.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Salary Raise after passing CPA exams. Please Help! #2929947
    NYSCPA
    Participant

    When I first started at my current job, I was explicitly told “Getting your CPA license will not translate into an auto increase in compensation” – My response was, “While I completely understand that “having a piece of paper” doesn't translate for me internally/here, it does increase my marketability externally.” The rest is self explanatory.



    @Mvhoover
    You are essentially asking for a 10% pay bump which isn't uncommon/unreasonable. Realistically you could put yourself on the market and see what other firms are offering a CPA with 2-3years of experience.

    Unfortunately, these situations really boil down to, The market says I'm worth XYZ, either you are willing to pay me that or your not. Be mindful to make apples to apples comparisons. A CPA with 2-3years of experience at a small 2 partner firm, shouldn't expect to make what a CPA with 2-3years of experience at a Big 4 firm makes, given the difference in work (hours/clients) and firm revenue

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: I want a lot of money #2928993
    NYSCPA
    Participant

    I'll second everything Recked said and add that 99.9% of my clients are from networking/referrals, no advertising necessary, but always an option. How do you find time to take care of side business with Big 4 OT during busy season? As your side business grows you may want to transition to private/smaller CPA firm to allow you more time to do side work. What state/city are you in? What is your billing rate?

    “The end goal has always been to eventually be my own boss, meaning either open up my own CPA firm or buy in as a partner at a smaller firm.” – This is me to a T. I actually told my boss this during my interview and he hired me anyway. I'm sure he did this for succession planning as no one else in my dept wants to be Partner once he retires. At this point I'm just waiting to get the news that he is retiring… In the meantime I started my own side gig, have about 1/3 the clients as you do, but most generate decent fees and a few generate 20k+/year so I'm not in a rush to expand just yet.

    “And you old men love building golden tombs and sealing the rest of us in with you.” While I live by the sentiment that there is nothing like building something on your own, I also understand the practical implications of taking over what someone else has built, via an outside acquisition or internal takeover. There are merits to going either route.

    Best of luck to you in your endeavors!

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: How much should I be getting paid? #2921793
    NYSCPA
    Participant

    Seems reasonable for position and locale. Where you have to “earn it” is the 1.5x OT, assuming there is enough work, live there during tax season. There is no such thing as “big bucks” at the Big 4 until you reach Manager or Partner Level. Before that, while your base may be decent for your position and locale, relatively speaking, your hourly is going to be absolute trash.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: How Does an S-Corp Pay Into Social Security? #2908041
    NYSCPA
    Participant

    Shareholders in a S Corp are considered both Employer and Employee. Therefore, you have two options 1) purchase software, CFS, Quickboks, etc.) and run a payroll for your Father-in-law from his S Corp. 2) Pay a payroll company to process the payroll (ADP, Paychex, etc.) When doing this the S corp (Employer) will pay the employer's share of FICA, and the business will withhold and remit your father in laws (employee) share of FICA.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Accounting for Attorney/Law Firm #2879586
    NYSCPA
    Participant

    @Aaronmo, I definitely disagree with the notion of booking the retainer as income. I “correctly” record that as a liability, because until it is earned, if the client fires my client, then that money is returned to them, which I actually had to deal with in late 2019.

    I don't move money from the IOLA account to the operating account until the client is invoiced (to me this is when the revenue is earned because this is when attorney has “access” to the cash). But also to me, this is one of those gray areas where I could attempt to argue either way, depending on the potential benefit to my client.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Accounting for Attorney/Law Firm #2879430
    NYSCPA
    Participant

    Thank you all for your responses, they are greatly appreciated. That you for the reference and research @Aaron!

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: Accounts Payable – 2 seemingly contradicting questions #2750532
    NYSCPA
    Participant

    I'm young, but old school. That said, Best way to view this is T Table. For 1) Year end balance of AP is $360,000, A component of that $360,000 is a $50,000 Debit Balance.

    _____AP_______
    50,000 ! 410,000
    !
    !
    _________________
    360,000
    To move the $50k to prepaid, you have to credit AP and debit Prepaid Assets. That brings the AP Balance to $410,000. When the Checks were written the entry was Debit AP and Credit Cash. Since checks were mailed until next year, AP at the end of the year is understated. So once you reverse that the balance goes from $410,000 to $510,000.

    “I guess I am still wondering why you would assume that a prepaid would be a credit to A/P and not a credit to cash?” See My T chart above. that $50k debit is baked into the YE balance already. That's the only way we know that they erroneous debited AP instead of Prepaid Assets.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: New job – no idea what I am doing #2740413
    NYSCPA
    Participant

    “I'm going to skip over the squabbling portion of this thread” but first, I will acknowledge it….. Only felt the need to point this out, as unlike other people, my shortest day is 14hrs and i'm doing 7days a week from late Aug to Oct 15th, so amuse me for a moment.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
    in reply to: New job – no idea what I am doing #2737203
    NYSCPA
    Participant

    @Hamcpa2018 Thank you. Best of luck with the last exam. BEC was my last as well. The happiness I felt on that day, seeing that passing score, was second only to the day I got married.

    NYS Licensed CPA. 12yrs in this shit and it never gets easier!
Viewing 15 replies - 1 through 15 (of 70 total)